This survey covers the performance of the top companies in 10 countries in Asia. Investors and other executives from financial centers such as Hong Kong, Singapore, New York and London are among those who participated in this survey. We had 497 votes.
Best Managed Company, Best E-commerce Strategy, Best Investor Relations, Most Committed to Shareholder Value - Taiwan Semiconductor
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Best Managed Company | ||
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Rank | Company | Votes |
1 | Taiwan Semiconductor | 56 |
2 | United Microelectronics | 17 |
3 | China Steel | 12 |
4 | Hon Hai Precision | 9 |
5 | Asustek Computer | 5 |
6 | Chunghwa Telecom | 4 |
7 | Formosa Plastics | 3 |
7 | Applied Materials Taiwan | 3 |
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Best E-commerce Strategy | ||
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Rank | Company | Votes |
1 | Taiwan Semiconductor | 31 |
2 | United Microelectronics | 12 |
3 | Chunghwa Telecom | 7 |
4 | Via Tech | 5 |
4 | Synnex Technology International | 5 |
6 | China Steel | 4 |
7 | Formosa Plastics | 3 |
8 | Hon Hai Precision | 2 |
8 | Macronix International | 2 |
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Best in Investor Relations | ||
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Rank | Company | Votes |
1 | Taiwan Semiconductor | 41 |
2 | United Microelectronics | 7 |
3 | Cathay Life Insurance | 4 |
4 | Macronix International | 3 |
4 | Quanta Computer | 3 |
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Commitment to Shareholder Value | ||
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Rank | Company | Votes |
1 | Taiwan Semiconductor | 37 |
2 | United Microelectronics | 10 |
3 | Asustek Computer | 5 |
3 | Quanta Computer | 5 |
5 | Via Tech Inc | 4 |
6 | Chunghwa Telecom | 3 |
6 | Macronix International | 3 |
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Taiwan Semiconductor (TSMC), the world's biggest semiconductor subcontractor, was voted first in all four categories, an unequivocal vote of confidence at a time when chip makers are suffering from a slowdown in demand. TSMC makes integrated circuits for customers such as Intel which sells the chips under its own brand.
"Its management is second to none," gushes one of many survey respondents who praised the company. "It has been at the forefront of the foundry industry and leads this sector on a global basis. It has been able to weather economic downturns yet remain strong."
"TSMC has demonstrated a deep understanding of the demand cycles in their business; they don't take sales for granted."
The company predicted in February that its first-quarter sales and profit will fall by at least 24% compared with the previous quarter, and said net profit in 2001 could be unchanged compared with 2000.
TSMC's customers have built up backlogs of semiconductors because demand for computers, mobile phones and other chip-driven consumer electronics, is slowing. The company may postpone installing equipment in a new factory that will make 12-inch silicon wafers.
Even so, TSMC remains optimistic about its longer-term prospects. The company has said it expects annual worldwide chip production to reach $3 trillion in ten years. It plans to produce 4.5 million 8-inch wafers this year, up nearly 30% from the 3.5 million it made last year, but down from an earlier prediction of 4.7 million.
The company is betting demand from telecommunications companies will pick up towards the end of the year as they begin to roll out their 3G strategies. Over the next 10 years, TSMC expects to top the average profit made by the industry by some 15%.
It also plans to double its spending on research and development this year to about NT$9.8 billion ($302 million). The company plans to spend NT$1.95 alone on a production line to make 15,000 300-millimeter silicon wafers a month.
Notes one respondent: "TSMC has very specific short-term and long-terms goals to achieve within its capacity."
The company is putting its money where its mouth is. In March it announced it would pay a dividend of 400 shares for each 1,000 shares held, up from 280 shares for every 1,000 held last year. The move prompted rival United Microelectronics (UMC), the number two subcontractor, to accuse TSMC of encouraging workers to cash in their shares and move with their profits to China's mainland, where they may either set up competing businesses or work for existing mainland rivals. Analysts dismissed the charge as an attempt by UMC to distract attention from its own, much lower dividend payout.
TSMC was the first Taiwanese company to list on the New York Stock Exchange. The ADRs trade at a premium to the company's domestic shares.
"TSMC has strong visionary management with Mr. Morris Chang as chairman and a well-planned succession," says one survey respondent. "It is one of the few Taiwanese companies with transparency and openness."
Last year Taiwan overtook Japan as the world's second-biggest market after the US for computer chip-making equipment, with TSMC and UMC accounting for most of that demand.
The results of this poll first appeared in the April issue of FinanceAsia magazine. To buy a copy please send an e-mail to: [email protected].
